Baker and takeaway retailer Greggs has received a £250,000 sweetener from the north-east development agency One Northeast to expand savoury production on Tyneside.
Last summer, the company indicated that it was prepared to invest elsewhere in order to supply a growing number of its branded outlets across the south of England. But a £13m pasty and sausage roll factory, which the company said would create 50 new jobs after completion in 2006, will instead be built near Greggs' existing production facility at Balliol Park.
Group production director Nigel Oldham said: "The additional capacity will enable the company to meet the continuously growing demand for our freshly baked savouries in all Greggs and Bakers Ovens shops."
The company employs 17,900 people and operates more than 1,200 stores as well a number of bakeries. It recently completed a £4m, 1,500m2 extension to its Bramley bakery near Leeds.
Last year, Greggs made a record pre-tax profit of £40.5m on a turnover of £457m -- up 10.4% year-on-year.